How to Start a Trampoline Park Franchise? Sky Zone vs. Urban Air
Explore thrilling business opportunities with Sky Zone and Urban Air franchises, where year-round indoor entertainment meets entrepreneurship. Discover the excitement of bringing adventure to your community today!
Table of Contents:
How to Start a Trampoline Park Franchise? Sky Zone vs. Urban Air Franchise Explained
How is the Trampoline Park and Outdoors industry?
How Much is a Sky Zone Franchise?
How much do Sky Zone franchise owners make?
How many Sky Zone units have opened and closed?
How Much is an Urban Air Franchise?
How much do Urban Air franchise owners make?
Trampoline Park Franchises, such as Sky Zone or Urban Air, have become increasingly popular in recent years, providing a unique and thrilling experience for children and adults alike. These indoor playgrounds offer an exciting alternative to traditional outdoor recreation by combining the joy of bouncing on trampolines with various other activities. With the rise in demand for such entertainment venues, starting a trampoline park franchise has emerged as an attractive business opportunity.
How to Start a Trampoline Park Franchise? Sky Zone vs. Urban Air Franchise Explained
One of the key reasons behind the success of trampoline parks is their ability to provide year-round fun regardless of weather conditions. Unlike outdoor playgrounds that are limited by seasonal changes or unfavorable climates, these indoor facilities allow visitors to enjoy themselves no matter what time of year it is. This aspect alone ensures a steady flow of customers throughout all seasons.
Furthermore, trampoline parks stand out due to their versatility and diverse range of activities offered under one roof. From classic open jump areas where participants can freely bounce around to foam pits offering exhilarating dives into cushioned landings, these parks cater to individuals with varying levels of athleticism and interests. They also often include attractions like dodgeball courts, basketball hoops for slam dunks while defying gravity, and obstacle courses challenging both physical strength and agility – ensuring there’s something for everyone.
In addition to being entertaining spaces for recreational purposes, many trampoline parks also serve as ideal venues for hosting birthday parties or corporate events. The combination of high-energy activities with dedicated party rooms creates memorable experiences that attract groups looking for interactive celebrations or team-building exercises.
When considering venturing into the world of trampoline park franchises, two prominent names come up frequently: Sky Zone and Urban Air Franchise. Both brands have established themselves as leaders in this industry through their innovative designs and commitment to safety measures.
Sky Zone boasts its patented wall-to-wall aerial action along with unique elements like Glow Nights where neon lights transform the park into an electrifying wonderland after dark. On the other hand, Urban Air excels at creating immersive adventure parks, integrating attractions like climbing walls, go-kart tracks, and virtual reality experiences.
Whether you choose Sky Zone or Urban Air Franchise, the trampoline park industry presents an exciting opportunity to combine fun with entrepreneurship. By tapping into the growing demand for indoor entertainment spaces that offer thrilling activities all year round, aspiring franchisees can embark on a journey filled with excitement and success.
How is the Trampoline Park and Outdoors industry?
The Trampoline Park and Outdoors industry has experienced significant growth in recent years. According to a report by IBISWorld, the trampoline park market size in the United States reached $1 billion in 2020, with an annual growth rate of approximately 4.9% over the past five years. This can be attributed to various factors such as increasing consumer interest in fitness activities, rising disposable incomes, and growing awareness about recreational options for both children and adults.
Trampoline parks have gained popularity due to their unique entertainment value and ability to cater to a wide range of age groups. These facilities offer a variety of activities including free jumping areas, dodgeball courts, foam pits, obstacle courses, and even fitness classes. Furthermore, trampoline parks often host birthday parties or corporate events which contribute significantly to their revenue streams.
In terms of outdoor recreation activities such as hiking trails, camping grounds, water sports centers, etc., it is difficult to provide specific figures as they vary greatly depending on location and type of activity. However, outdoor recreation contributes $778 billion annually to the U.S. economy according to a report by Outdoor Industry Association (OIA). The OIA also estimates that this sector supports over 5 million jobs across various industries ranging from retail sales of outdoor equipment to hospitality services near popular outdoor destinations.
Overall, the Trampoline Park industry has seen substantial growth while outdoor recreation continues its importance within tourism sectors driving economic development through job creation opportunities
Sky Zone Franchise
Sky Zone is a leading trampoline park franchise that has made a name for itself in the industry with its innovative designs and commitment to safety measures. As one of the pioneers of indoor trampoline parks, Sky Zone offers a unique and thrilling experience for children and adults alike. With wall-to-wall aerial action, Sky Zone provides an immersive environment where visitors can bounce their way through various activities. From classic open jump areas to foam pits and dodgeball courts, there’s something for everyone at a Sky Zone trampoline park. They also offer special events like Glow Nights, where neon lights transform the park into an electrifying wonderland after dark.
One of the key advantages of choosing a Sky Zone franchise is its established brand recognition. With over 200 locations worldwide, they have built a strong reputation as leaders in the industry. This can provide aspiring franchisees with instant credibility and customer trust.
In terms of financial requirements, starting a Sky Zone franchise does require significant investment capital. However, it’s important to note that this investment comes with potentially high returns due to the increasing demand for indoor entertainment spaces like trampoline parks.
Overall, choosing a Sky Zone trampoline park franchise presents an exciting opportunity for entrepreneurs who want to combine fun with entrepreneurship while tapping into an industry that continues to grow in popularity.
How Much is a Sky Zone Franchise?
The initial Sky Zone Franchise Fee is $75,000. You have to pay this upfront fee when opening a Sky Zone franchise.
Sky Zone Franchise Cost
The estimated total investment necessary to begin the operation of a Sky Zone Franchise ranges from $1,567,500 to $4,029,500 depending on the area of your franchise. The following costs are part of the upfront costs included in the initial investment for a Sky Zone. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Sky Zone franchise of 35,000 square feet in 2023. Check out the FDD to see all prices.
Estimated Initial Investment
Estimated Initial Investment
| Type of Expenditure | Amount | |
|---|---|---|
| Low | High | |
| Initial Franchise Fee | $75,000 | $75,000 |
| Lease & Security Deposits | $65,000 | $125,000 |
| Leasehold Improvements/Architect | $1,200,000 | $1,500,000 |
| Signage | $40,000 | $60,000 |
| Attractions | $1,000,000 | $1,375,000 |
| Furniture/Fixtures | $55,000 | $65,000 |
| Computer Software License and Hardware | $59,500 | $78,000 |
| Equipment and Supplies | $150,000 | $170,000 |
| Licenses, Dues, and Utility Deposits | $5,000 | $7,500 |
| Inventory | $35,000 | $45,000 |
| Travel Expenses/Pre-Opening Salaries | $44,000 | $55,000 |
| Professional Fees | $5,500 | $14,000 |
| Insurance Premiums, Allocations and Other Insurance for first quarter of operations | $26,000 | $40,000 |
| Additional Funds – 3 months | $70,000 | $115,000 |
| Grand Opening Advertising | $25,000 | $35,000 |
| TOTAL | $2,855,000 | $3,759,500 |
Sky Zone Franchise Requirements
To become a Sky Zone franchisee, individuals must meet certain requirements set by the company. These requirements may include:
Financial Requirements: Franchisees are typically required to have a minimum net worth of $2 million and liquid assets of at least $500,000.
Experience: While prior experience in the entertainment or fitness industry is not mandatory, it can be beneficial for potential franchisees. Having experience in business management or owning/operating a franchise can also increase the chances of being approved.
Passion for the Brand: Sky Zone looks for individuals who are passionate about their brand and its mission to provide fun and active experiences for customers.
Commitment to Quality: The company seeks franchisees who are committed to maintaining high-quality standards across all aspects of their operation, from customer service to facility maintenance.
Business Plan: Potential franchisees will need to submit a detailed business plan that outlines their strategy for success as well as financial projections.
Location Selection: Choosing an appropriate location is crucial for success with any franchised business, including Sky Zone franchises. Franchisees should consider factors such as population density, competition analysis, accessibility, and demographics when selecting a site.
Training and Support: Successful candidates will undergo comprehensive training provided by Sky Zone before opening their own location(s). Ongoing support is also available through regular communication with corporate representatives and access to resources such as marketing materials and operational guidelines.
It’s important to note that these requirements may vary depending on various factors like country-specific regulations or individual circumstances outlined during the application process with Sky Zone corporate team members.
Owning a Sky Zone Franchise Requires Ongoing Fees
Royalty: 6% of Gross Sales
Advertising Fee: Currently, 2% of Gross Sales
How much do Sky Zone franchise owners make?
2022 Parks – Annual Gross Sales for 2022 Fiscal Year
| # of Parks | Average Unit Volume | #/% Exceeding Average | Highest AUV | Lowest AUV | Median AUV | |
|---|---|---|---|---|---|---|
| 144 | $2,205,058.13 | 61 | $6,166,468.42 | $383,233.78 | $2,035,718.76 | |
| Top Third | 48 | $3,180,143.08 | 14 | $6,166,468.42 | $2,446,572.84 | $2,991,793.10 |
| Middle Third | 48 | $2,079,083.42 | 22 | $2,439,168.00 | $1,818,740.15 | $2,035,718.76 |
| Bottom Third | 48 | $1,355,947.89 | 31 | $1,790,331.63 | $383,233.78 | $1,453,633.23 |
2022 Sky Zone Median Franchise Sales: $2,035,718
| Initial investment (midpoint) | %Profit margin of median franchise sales | Estimated Profits | Time to recoup investments |
|---|---|---|---|
| $3,307,250 | 20% | $407,153 | 10 years |
| $3,307,250 | 25% | $508,929 | 8.5 years |
| $3,307,250 | 30% | $610,715 | 7.5 years |
Based on the median sales provided by Sky Zone’s franchise locations, at an average of a 25% profit margin, it will take around 8.5 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 25% profit margin which would elongate getting a return on your investment.
Many factors affect the sales, costs, and expenses of your Franchised Store. Such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace. The presence of other Trampoline Park stores; the extent of market penetration and brand awareness that Sky Zone stores have attained in your market. Also, the quality of management and service at your Franchised Store are major factors.
How many Sky Zone units have opened and closed?
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2020 | 138 | 121 | -17 |
| 2021 | 121 | 118 | -3 | |
| 2022 | 118 | 119 | +1 | |
| CompanyOwned* | 2020 | 19 | 21 | +2 |
| 2021 | 21 | 22 | +1 | |
| 2022 | 22 | 33 | +11 | |
| Total Outlets | 2020 | 157 | 142 | -15 |
| 2021 | 142 | 140 | -2 | |
| 2022 | 140 | 152 | +12 |
Over the last three years, the company has been in decline. While franchises have closed, new company-owned stores have opened. Over the last three years, franchises have closed at a rate of almost 7 units a year. This is an indicator that these stores may not be performing well. Or their franchise term is up and they are not renewing it.
Urban Air Franchise
Urban Air Franchise is another prominent name in the trampoline park industry. With its immersive adventure parks and diverse range of attractions, Urban Air offers a unique and thrilling experience for visitors of all ages. One of the key advantages of choosing an Urban Air franchise is its ability to create immersive environments that go beyond traditional trampoline parks. In addition to wall-to-wall trampolines, Urban Air integrates attractions like climbing walls, go-kart tracks, virtual reality experiences, and more. This allows franchisees to offer a wide variety of activities that cater to different interests and preferences.
Similar to Sky Zone, Urban Air has established itself as a leader in the industry through innovative designs and commitment to safety measures. The company prioritizes creating safe environments for guests while still providing high-energy entertainment options.
In terms of financial requirements, starting an Urban Air franchise also requires significant investment capital. However, with the growing demand for indoor entertainment spaces that offer thrilling activities year-round, aspiring franchisees have the potential for high returns on their investment.
Overall, choosing an Urban Air trampoline park franchise presents entrepreneurs with an exciting opportunity to combine fun with entrepreneurship while tapping into a market that continues to grow in popularity.
How Much is an Urban Air Franchise?
The initial Urban Air Franchise Fee is $100,000. You have to pay this upfront fee when opening an Urban Air franchise.
Urban Air Franchise Cost
The estimated total investment necessary to begin the operation of an Urban Air Franchise ranges from $3,707,592 to $8,192,274 depending on the size of your franchise. The following costs are part of the upfront costs included in the initial investment for Urban Air. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy an Urban Air 2.0 Franchise of between 30,000 and 40,000 square feet in 2023. Check out the FDD to see all prices offered by Urban Air.
Estimated Initial Investment
Estimated Initial Investment
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
| Initial Franchise Fee | $100,000 to $100,000 | Lump sum | When Franchise Agreement is signed | Us |
| Security Deposits for commercial lease | $20,000 to $70,000 | As incurred | Typically, upon execution of the commercial lease | Landlord |
| Other Security Deposits | $2,500 to $10,000 | As incurred | As incurred | Utility or equipment providers |
| Business License/Gov’t Approval | $300 to $1,500 | As incurred | As incurred | Licensing Authorities |
| Leasehold Improvements | $1,650,000 to $2,600,000 | As arranged | As required | Contractors and third-party suppliers |
| Audio-Visual (equipment and installation) | $145,000 to $235,000 | As arranged | As required | Contractors and third-party suppliers |
| Architectural Plans | $69,600 to $92,800 | As arranged | As required | Approved Architect |
| Café equipment and Café furniture | $120,000 to $205,000 | As arranged | As incurred | Contractors and third-party suppliers |
| Smallwares | $10,000 to $15,000 | As arranged | As incurred | Contractors and third-party suppliers or our affiliate |
| Exterior Signage | $12,500 to $50,000 | As arranged | As incurred | Approved suppliers or our affiliate |
| Interior Signage & Rules | $10,000 to $25,000 | As arranged | As incurred | Approved Suppliers |
| Furniture, Fixtures, and Equipment | $60,000 to $69,000 | As arranged | As incurred | Approved suppliers |
| Point-of-sale and Computer Systems | $7,558 to $7,558 | As arranged | As incurred | Approved suppliers or our affiliate |
| Base Attraction Equipment 2.0 Package | $1,273,750 to $1,439,132 | As arranged | As incurred | Our affiliate |
| Optional 2.0 Attraction Equipment Upgrade Package | $0 to $980,000 | As arranged | As incurred | Third-Party |
| Professional Fees | $4,000 to $10,000 | As arranged | As incurred | Your accountant, attorney, and other professionals |
| Travel and Living Expenses | $1,500 to $7,500 | As arranged | As incurred | Third-Party |
| Initial Inventory (Merchandise) | $20,700 to $20,700 | As arranged | As incurred | Approved suppliers and/or our Affiliate |
| Initial Inventory (Food) | $15,000 to $22,200 | As arranged | As incurred | Approved suppliers |
| Pre-opening Wages | $26,584 to $32,584 | As arranged | Per your designated pay schedule | Your employees |
| Insurance | $8,000 to $20,000 | As agent requires | Before opening | Approved suppliers or our Affiliate |
| Third-Party Inspection Fees | $600 to $3,500 | As arranged | As incurred | Approved Inspectors |
| Grand Opening Advertising | $30,000 to $50,000 | Lump sum | Before opening | Third-party vendors, service providers, media providers and/or Us, as applicable |
| Working Capital | $120,000 to $240,000 | As arranged | As incurred | Various |
| Total | $3,707,592 to $6,306,474 | |||
Owning an Urban Air Franchise Requires Ongoing Fees
Royalty: 7% of monthly Gross Sales
Local Marketing Fee: Up to 6% of monthly Gross Sales, currently 5% of Gross Sales
NAF: Up to 5% of monthly Gross Sales, currently 0% of Gross Sales
How much do Urban Air franchise owners make?
Annual Gross Sales of Franchised Parks the Entire 2022 Fiscal Year
| 2.0 Parks | 2.5 Parks | |
|---|---|---|
| Average | $3,338,708 | $4,289,692 |
| Median | $3,034,386 | $4,104,000 |
| Minimum | $1,175,596 | $2,542,759 |
| Maximum | $10,709,052 | $6,548,494 |
| #/% Attaining or Surpassing Average | 36/41.9% | 7/38.9% |
2022 Urban Air Mean Median Franchise Sales: $ 3,600,000
2022 Urban Air Median Franchise Sales: $843,456
| Initial investment (midpoint) | %Profit margin of median franchise sales | Estimated Profits | Time to recoup investments |
|---|---|---|---|
| $6,000,000 | 20% | $720,000 | 10 years |
| $6,000,000 | 25% | $900,000 | 8.5 years |
| $6,000,000 | 30% | $1,080,000 | 7.5 years |
Based on the median sales provided by Urban Air’s franchise locations, at an average of a 25% profit margin, it will take around 8.5 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 25% profit margin, which would elongate getting a return on your investment.
Many factors affect the sales, costs, and expenses of your Franchised Store. Such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace. The presence of other Trampoline Park stores; the extent of market penetration and brand awareness that Urban Air stores have attained in your market. Also, the quality of management and service at your Franchised Store are major factors.
How many Urban Air units have opened and closed?
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2020 | 115 | 149 | +34 |
| 2021 | 149 | 149 | 0 | |
| 2022 | 149 | 162 | +13 | |
| Company Owned | 2020 | 2 | 2 | 0 |
| 2021 | 2 | 3 | +1 | |
| 2022 | 3 | 5 | +2 | |
| Total Outlets | 2020 | 117 | 151 | +34 |
| 2021 | 151 | 152 | +1 | |
| 2022 | 152 | 167 | +15 |
Over the last three years, the company has seen massive expansion. Franchised units have grown from 115 to 162 for an average growth rate of 18 franchises per year which is almost 3x Sky Zone.
Conclusion
In conclusion, both Sky Zone and Urban Air provide compelling opportunities for entrepreneurs interested in entering the burgeoning trampoline park franchise industry. Each brand carries its unique advantages and potential considerations, depending on the franchisee’s specific objectives and resources.
Sky Zone, a pioneer in the industry, offers an attractive proposition with its wall-to-wall trampoline design, Glow Nights, and strong brand recognition across more than 200 locations worldwide. The initial investment required is relatively lower, ranging between $1,567,500 and $4,029,500, making it a potentially more accessible option for those with limited capital. However, the recent trend of franchise closures may necessitate a more detailed investigation into individual franchise performance.
Urban Air, on the other hand, goes beyond the conventional trampoline park franchise model, offering an immersive adventure park experience. Their variety of attractions, including climbing walls, go-kart tracks, and virtual reality experiences, cater to a broader range of customer interests. While the initial investment required for an Urban Air franchise is significantly higher, ranging from $3,707,592 to $8,192,274, its franchise network has seen rapid expansion in recent years, signaling a potentially higher return on investment.
In both cases, it is important to consider the ongoing royalty and marketing fees, as these will impact the profitability of your trampoline park franchise. Also, keep in mind that factors such as your store’s size, location, competition, and management quality will significantly influence your success.
Therefore, when deciding between a Sky Zone and an Urban Air trampoline park franchise, it is crucial to align your choice with your financial capability, business goals, and passion for the brand. Ultimately, both offer the exciting possibility of combining entrepreneurship with the joy of providing fun and active experiences for a wide range of customers. As always, thorough research and due diligence are essential when embarking on any franchise venture.
While this may be the business for you, make sure also to check out other companies offered on Vetted Biz.
